US Think Tank Accuses OECD Of 'Unethical Behaviour' On Tax Issues

by Ulrika Lomas, Tax-News.com, Brussels

02 June 2004

In its latest critique of the OECD’s campaign to stamp out “harmful tax competition”, the Center for Freedom and Prosperity has accused the multilateral organisation of engaging in “unethical behaviour” towards low tax jurisdictions.

Commenting on the think tank’s latest Prosperitas study entitled “The OECD's Dishonest Campaign Against Tax Competition: A Progress Report”, Andrew Quinlan, president of the Center for Freedom and Prosperity explained:

"The study sets the record straight once and for all that there is not a level playing field for the exchange of tax information between jurisdictions. The study also documents the OECD's unethical attempts to gloss over this critical fact."

Meanwhile, the study’s author Dan Mitchell, economist and the Heritage Foundation’s chief tax expert, stated that the OECD’s (Organisation for Economic Cooperation and Development) actions, although misguided, are hardly surprising “since uncompetitive, high-tax nations like France and Germany dominate the discussion at the Paris-based bureaucracy.”

“But I am somewhat surprised that the OECD has chosen to renege on its commitments," added Mr Mitchell.

The OECD’s policies towards low tax nations will be one of the topics on the agenda at a Tax Competition Round Table sponsored by the Heritage Foundation, among other groups, to be held in Berlin today. It has been deliberately scheduled to precede the OECD Global Forum on International Tax Policy due to commence on June 3rd, also in Berlin.

Other key issues to be addressed at the Roundtable will mainly be centred on European themes including corporate tax harmonisation, the EU savings tax directive, Eastern European tax reform and voting rules for tax policy in the European Constitution.

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